Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Ten years of strong adjustment for Finnish agriculture

24.05.2005


The accession to the European Union (EU) ten years ago was for the Finnish agriculture and food sector an unprecedented rapid shift from closed and regulated markets to open and more competitive ones. Finnish farmers faced a change in output prices, relative prices and direct support which were of exceptional magnitude compared to that of any other country which had ever joined the EU. Commitment to the Common Agricultural Policy (CAP) lowered the producer price level in Finland by 40-50% right at the beginning of 1995.

On market prices alone, the survival of Finnish agricultural production would have been very difficult. A comprehensive package of compensatory payments was therefore agreed to facilitate the adjustment. Various forms of support payments have played a central role during these first ten years in the EU in ensuring that Finnish agriculture succeeded in common EU markets. In 2004, support payments rose to €1.8 billion, which was 45% of the total return on agriculture and horticulture (€3.97 billion).

Despite the growth in direct payments, agricultural income has been falling in Finland. According to figures from MTT Agrifood Research Finland, agricultural income at fixed prices was almost 34% lower in 2004 than in 1994.



Rapid progress in structural development

Membership of the EU has not lead to any significant changes in the volume of Finnish agricultural production. However, the structural development of agriculture has been very rapid. The number of farms has fallen by more than 3% a year, and those engaged in livestock production even more. For example, the number of farms specialising in milk production has decreased by almost 7% a year. There were over 100,000 farms in Finland in 1994. Now, ten years later, there are but about 71,000 farms left. “There are no indications that the structural change will be slowing down in the long term. On the contrary, trade liberalisation will continue to call for further concentration in the sector. By 2020, there will be less than 40,000 farms left” says Jyrki Niemi, an agricultural economist at MTT.

Even though the structure of Finnish agriculture has changed quite rapidly, the development of agricultural productivity has been relatively slow. In 2004, the same use of production inputs yielded about 12% more than in 1992, showing that productivity grew by a little under 1% a year. The new economic environment has not promoted agricultural productivity development as was expected.

Food prices have risen less than the other prices

The consumer price of food fell, on average, by 11% when Finland joined the EU in 1995. Between 1995 and 2004, food prices rose by 11% in nominal terms, while the general consumer price index rose by 13.4%, which means that food prices are below the level in 1995 in real terms.

Membership of the EU has clearly reinforced the position of the retail trade in the food chain relative to primary production and the food industry. The share of the retail sector in the consumer price of food has increased by a few percentage points in recent years.

Ulla Jauhiainen | alfa
Further information:
http://www.mtt.fi
http://www.mtt.fi/english/

More articles from Agricultural and Forestry Science:

nachricht New gene for atrazine resistance identified in waterhemp
24.02.2017 | University of Illinois College of Agricultural, Consumer and Environmental Sciences

nachricht Researchers discover a new link to fight billion-dollar threat to soybean production
14.02.2017 | University of Missouri-Columbia

All articles from Agricultural and Forestry Science >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Safe glide at total engine failure with ELA-inside

On January 15, 2009, Chesley B. Sullenberger was celebrated world-wide: after the two engines had failed due to bird strike, he and his flight crew succeeded after a glide flight with an Airbus A320 in ditching on the Hudson River. All 155 people on board were saved.

On January 15, 2009, Chesley B. Sullenberger was celebrated world-wide: after the two engines had failed due to bird strike, he and his flight crew succeeded...

Im Focus: Breakthrough with a chain of gold atoms

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

Im Focus: DNA repair: a new letter in the cell alphabet

Results reveal how discoveries may be hidden in scientific “blind spots”

Cells need to repair damaged DNA in our genes to prevent the development of cancer and other diseases. Our cells therefore activate and send “repair-proteins”...

Im Focus: Dresdner scientists print tomorrow’s world

The Fraunhofer IWS Dresden and Technische Universität Dresden inaugurated their jointly operated Center for Additive Manufacturing Dresden (AMCD) with a festive ceremony on February 7, 2017. Scientists from various disciplines perform research on materials, additive manufacturing processes and innovative technologies, which build up components in a layer by layer process. This technology opens up new horizons for component design and combinations of functions. For example during fabrication, electrical conductors and sensors are already able to be additively manufactured into components. They provide information about stress conditions of a product during operation.

The 3D-printing technology, or additive manufacturing as it is often called, has long made the step out of scientific research laboratories into industrial...

Im Focus: Mimicking nature's cellular architectures via 3-D printing

Research offers new level of control over the structure of 3-D printed materials

Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Booth and panel discussion – The Lindau Nobel Laureate Meetings at the AAAS 2017 Annual Meeting

13.02.2017 | Event News

Complex Loading versus Hidden Reserves

10.02.2017 | Event News

International Conference on Crystal Growth in Freiburg

09.02.2017 | Event News

 
Latest News

New pop-up strategy inspired by cuts, not folds

27.02.2017 | Materials Sciences

Sandia uses confined nanoparticles to improve hydrogen storage materials performance

27.02.2017 | Interdisciplinary Research

Decoding the genome's cryptic language

27.02.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>